Every year, businesses in Mississippi experience disasters and accidents that can prove very expensive for those who are uninsured. In fact, in 2019, businesses in the Magnolia State collected more than $3.1 billion in insurance claims. Some of these claims were filed by owners of catering companies.
Local independent insurance agents can help you find the best and most affordable policies to cover your catering business against any potential risks it may be exposed to. Talk to an insurance agent near you to learn more about catering insurance.
What Is Catering Insurance?
Catering insurance is a general term used to describe a business owners policy (BOP) or a business insurance policy package that has been customized to meet the specific coverage needs of catering companies.
What Kinds of Problems Might a Mississippi Catering Company Face?
There are a few problems that can lead to expensive losses for your catering firm if it is not property insured. Here are some examples.
- One of your employees accidentally cuts their hand while chopping vegetables. The injury causes severe nerve damage that requires surgery.
- A hurricane causes long-term, widespread power outages. All the food you have stored in your refrigerators and freezers is spoiled.
- You are involved in a serious collision while transporting food and supplies to an event you have been booked to cater. You never make it there and the unhappy client sues your company.
These are just some of the many problems that a comprehensive catering insurance policy package can cover your business against.
How Much Does Catering Insurance Cost in Mississippi?
The cost for catering insurance can vary from one business to the next. It can range from $25 a month for a small business to more than $200 a month for a large company with lots of employees. Here are some of the factors that can influence your premiums.
- The size of your catering business and its expected annual revenues
- The number of workers you employ
- The value of your company’s property and assets
- The crime rate and weather risks where your business is located
- The amount of liability coverage you want to purchase
- Your company’s claims history
The only way to find out how much coverage will cost for your catering company is by requesting customized quotes from a few competing insurance companies.
What Does Mississippi Catering Insurance Cover?
Catering insurance can include as much or as little coverage as you want it to because all business insurance products are fully customizable. Here are some of the most important policies you may want to include in your catering insurance portfolio.
- Commercial property insurance: This can cover the cost to repair or replace your business property if it is lost or damaged by a covered event like a fire, theft, or a severe weather event.
- Business liability insurance: This can cover court costs, legal defense fees, settlement costs, judgements, and other damages if your catering business is sued for a covered event. You will want to make sure that your business is covered by the right kinds of liability products. (More on this later.)
- Business interruption insurance: This can provide your business with a continuation of income if it must temporarily shut down while repairs are made following a covered event.
- Equipment breakdown insurance: This can cover the cost to repair or replace your well-maintained essential equipment like stoves and freezer units if they break down unexpectedly.
- Spoiled food insurance: This is typically included with your equipment breakdown coverage but can be purchased on its own. It covers your losses if a failure of your cooling systems causes food products to go bad.
- Workers’ compensation insurance: This can cover medical treatments and lost pay if your employees are injured on the job. In Mississippi, this coverage is only mandatory if you employ at least five regular workers.
When putting together a business insurance policy package, it is a good idea to have the guidance of an experienced professional. That way, you can be sure that your catering company is not left with any untended coverage gaps.
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Do I Need Specific Liability Coverage for My Mississippi Catering Business?
As was mentioned earlier, commercial liability insurance is a very important product for businesses of all types to have. All business insurance products come equipped with commercial general liability insurance (CGL), which includes the following policies.
- Premises liability insurance: This can cover your business’s liabilities if a third party is injured on your business premises, such as if a delivery person dropping off a food order slips on a wet floor in your kitchen.
- Product liability insurance: This can cover your business’s liabilities of food you serve is somehow contaminated and causes people to get sick.
- Advertising liability insurance: This can cover your catering business if it is accused of marketing errors like deceptive pricing, false advertising, or copyright infringement.
- Coverage against accusation of libel or slander
CGL covers against a lot of potential problems, but it doesn’t cover every liability risk that catering business are exposed to. You may therefore also want to look into purchasing the following policies.
- Errors and omissions insurance: This is professional liability insurance designed to cover lawsuits related to negligence, such as if you or your employees fail to provide service as contracted or damage a client's kitchen area.
- Cyber liability insurance: This can cover your catering company’s liabilities if hackers access personal or financial data pertaining to your clients or employees that you have stored electronically.
- Employment practices liability insurance (EPLI): This can cover your catering business against accusations of illegal employment practices like harassment, discrimination, and wrongful termination.
When you have the right liability insurance products in place, you can rest assured that a liability lawsuit will not bankrupt your Mississippi catering business.
What Is Not Covered by Catering Insurance?
As with any insurance product, catering insurance has some exceptions to what it will cover, which include the following.
- Damage caused by floods: Flood damage is not covered by commercial property insurance, even if the flood is the direct result of a covered hurricane or storm. To be covered against this hazard, you will need to supplement your catering insurance with commercial flood insurance.
- Damage caused by earthquakes: Earthquakes are not covered by commercial property insurance. However, seismic activity is elevated in the northwestern part of this state. If you believe your business is at risk, you can supplement your policy with earthquake insurance.
You will want to be sure that you are aware of any coverage limitations your policy may have so that you can buy appropriate supplemental coverage when necessary.
Where Can I Find the Best Catering Insurance Coverage?
Independent insurance agents can help you identify all of your catering company’s potential risks and can shop around to find you the best and most affordable insurance products to cover against each of them. That way, you do not need to worry that your business is exposed to any unintended coverage gaps.
There are more than 200 independent agents in Mississippi. Set up an obligation-free consultation with an insurance agent near you to start comparing customized quotes for catering insurance.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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